Tag: Home Appraisal

Portland Real Estate Appraisal Brief – Sunday, December 7, 2025: Affordable Housing Paradox – 1,863 Vacant Units Amid Record Need

Portland’s inclusionary zoning is producing units, but 1,863 income-restricted apartments remain vacant amid funding cuts and administrative delays—creating measurable valuation risk for residential and multifamily professionals.

Empty interior of a newly completed or income-restricted apartment unit in the Portland metro area, illustrating persistent vacancies in affordable housing relevant to real estate appraisal and valuation.
Empty interior of an income-restricted apartment unit in Portland, symbolizing the region’s persistent vacancies in affordable housing programs
Via Canva Pro

Policy Wins Collide With Activation Barriers

Portland’s affordable housing programs are delivering a classic paradox: policy mechanisms are finally producing new income-restricted units, yet nearly 1,900 completed apartments—representing a 7.4% vacancy rate across the region’s 25,409 subsidized units—sit empty while homelessness continues to climb.

The city’s inclusionary zoning program, which requires or incentivizes developers to reserve a portion of new units for households earning 60% or less of area median income (AMI)—where the FY 2025 median family income for a 4-person household in the Portland-Vancouver-Hillsboro OR-WA MSA is $124,100—has shown measurable improvement in actual unit production after years of refinement. This is a hard-won policy success in a market that has long struggled to integrate affordability into private development.

These gains, however, are being undermined by systemic activation challenges. Home Forward, Multnomah County’s primary administrator of subsidized housing and the Housing Choice Voucher (Section 8) program, faces a $35 million budget shortfall that includes a $14 million cut in federal voucher funding. The agency has paused new voucher issuances, eliminated at least 12 positions, and extended waitlists that already see roughly seven applications for every opening.

Providers cite a combination of administrative delays, rising operational costs, higher post-pandemic eviction rates, and narrowing rent gaps (42% of metro units are now within 10% of market rent) as the main drivers of prolonged vacancies. As Reach Community Development’s executive director noted, “even affordable rents are too high” for many eligible households without deeper subsidies.

Mayor Keith Wilson has explicitly linked these activation failures to the region’s homelessness crisis. Although 890 of a targeted 1,500 new low-barrier shelter beds are now open, many operate at just over 50% occupancy—compared with 87% at existing 24-hour shelters—because permanent housing remains the preferred exit. With more than 7,500 individuals unsheltered in Multnomah County (up over 1,000 since January 2025) and monthly inflows of ~1,400 people outpacing permanent placements of ~1,100, the region continues to see a net increase in homelessness.

Appraisal Implications

These activation failures translate directly into valuation and underwriting risk for professionals across the Portland metro area.

Residential Properties

Inclusionary zoning covenants create deed-restricted comparables that must be segregated from market-rate sales. As the program matures, appraisers in Multnomah, Clackamas, Washington, Columbia, Yamhill, and Clark counties will see a growing volume of these restricted transactions, especially in newer condominium and mixed-use projects—though the highest concentration remains within the City of Portland’s jurisdiction in Multnomah County. With the Q3 2025 median price for detached single-family homes in the region at approximately $600,000—as noted in our Q3 2025 Portland region market update—the gap between market-rate ownership and income-restricted pricing remains stark.

Multifamily and Investment Properties

The 1,863 vacant income-restricted units create an immediate drag on potential gross income and stabilized net operating income (NOI). Projects financed through Low-Income Housing Tax Credits (LIHTC) or subject to inclusionary requirements now face extended lease-up periods—often months rather than weeks—due to public-agency bottlenecks. Recent FHFA increases to 2026 multifamily loan purchase caps may encourage new supply, but activation risks remain a key variable.

Appraisers using the income approach should give heightened scrutiny to:

  • Absorption timelines (extend beyond market-rate norms)
  • Vacancy allowances (increase for policy-induced vacancy)
  • Capitalization rates (higher risk typically justifies higher cap rates)

Lenders and investors underwriting affordable or mixed-income developments must incorporate longer stabilization horizons and potential LIHTC compliance risks into their models.

Market Context

When finished apartments remain offline, the housing-homelessness pipeline stalls, forcing greater reliance on temporary shelter systems even as permanent supply begins to grow.

Bar graph. Data: OregonLive (1,863 vacant units, December 2025); OPB / Multnomah County Point-in-Time Count (7,500+ unsheltered individuals, late 2025 estimates)

Resolving this paradox will require targeted investment in administrative capacity and deeper subsidy layers to match completed units with the households who need them most.

Sources & Further Reading

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Thanks for reading—I hope you found a useful insight or an unexpected nugget along the way. If you enjoyed the post, please consider subscribing for future updates.

CODA

Are you an agent in Portland and wonder why appraisers always do “x”?

A homeowner with questions about appraiser methodology?

If so, feel free to reach out—I enjoy connecting with market participants across Portland and the surrounding counties, and am always happy to help where I can.

And if you’re in need of appraisal services in Portland or anywhere in the Portland Region, we’d be glad to assist.

Portland Real Estate Appraisal Brief – Saturday, December 6, 2025: Portland Eases Code for Single-Exit Four-Story Apartments

Portland’s code now allows single-exit stairwell apartments, raising the maximum unit count on infill lots and posing a compliance challenge for Portland Certified Residential Appraisers.

New three-story, 16-unit multifamily on 5,000 sq ft CM2 lot at 11 NE 55th Ave, Portland, exemplifying H&BU shifts in RM1/RM2 transitional zones post-single-exit stairwell guidelines.
Three-story, 16-unit apartment building on a 5,000 sq ft lot—an early example of the infill density now fully achievable in Portland’s RM1 and RM2 zones under current zoning and the 2025 single-exit stairwell provisions
11 NE 55th Ave, Portland, Oregon – December 2025
Photo: Abdur Abdul-Malik, Certified Residential Appraiser

Easing Regulatory Barriers to Mid-Rise Infill

The City of Portland’s Bureau of Development Services, in coordination with Portland Fire & Rescue, approved a final Building Code Guide (BCG 25–10) on October 22, 2025, that permits single-exit stairwells in certain apartment buildings up to four stories in height. This guide implements a provision already adopted within the 2025 Oregon Structural Specialty Code (OSSC), removing a significant regulatory barrier that often rendered mid-rise infill housing financially and physically impractical on constrained urban lots throughout the Portland metro area.

This code clarification aligns Portland with the practices of progressive code adopters, including Seattle and various international jurisdictions, which have successfully and safely utilized single-stair designs for decades. The change is particularly relevant for infill sites—common in Portland’s established neighborhoods—where lot width or depth previously made the mandatory two-stairwell design economically unfeasible.

The economic advantage is substantial: traditional two-stair designs can consume 13–16% of the total floor area for circulation (stairs and hallways). A single-stair “point access block” can reduce circulation space to as little as 6.5% of the floor area, effectively converting otherwise unusable common space into leasable or saleable residential square footage. The push to allow this type of construction illuminates the entangled intersection between safety, housing affordability, and building codes at a national level. This efficiency boost is key to making medium-density projects feasible in high-cost urban environments. The new allowance is expected to have a greater impact on Multi-Dwelling (RM) zones than on the R2.5–R20 zones, where unit counts are generally capped at six.

Appraisal Implications for Real Estate Valuation

The finalization of single-exit guidelines has direct implications for certified residential appraisers (CRs), lenders, and real estate professionals in the Portland region.

Multifamily Development and the CR 4-Unit Limit

The new guideline creates a direct compliance challenge for CRs. CRs are restricted to appraising residential properties containing four or fewer units.

The 16-unit apartment building at 11 NE 55th Ave provides a perfect case study: it is constructed on a 5,000 sq. ft. lot, which is a standard lot size for Portland. While this specific site is zoned CM2 (Commercial Mixed Use 2), it is a very common setup in transitional zones like RM1 or RM2 and makes for a warning of the complexities residential appraisers will now face on an increasing number of sites throughout the City of Portland. A comprehensive and thorough highest and best use analysis (H&BU) will be even more paramount for CRs going forward.

The Land Sale vs. Home Sale Trap (The H&BU Pitfall):

Here is what existed on the site prior:

Former single-family home at 11 NE 55th Ave in Portland’s CM2 zone, demolished to make way for a four-story, 16-unit apartment building on a 5,000 sq ft lot. Google Street View – circa 2021.
Single-family residence formerly at 11 NE 55th Ave (CM2 zone) prior to demolition and redevelopment into 16-unit multifamily
Portland, Oregon – circa 2019 (Google Street View archive)
Photo: Google Street View (public domain)

Note the home to the right of the subject. That neighboring home has RM2 zoning and still exists to this day. For the sake of illustration, let’s pretend the subject itself was located in the same RM2 zone. (The problem would also exist if it were in the RM1 zone.) I have always been wary of appraising properties in RM1 and RM2 zones due to the potential of unit density exceeding my license scope. However, in some select areas, a careful highest and best use analysis shows four units or less is still the market preference, or perhaps the only options feasible. Constructing an apartment building like the subject in an RM1 or RM2 zone was more difficult prior to the recent zoning change. A residential appraiser viewing the subject’s original home could easily come to the conclusion that the H&BU is still residential, as that conforms to the next door property. However, the financial data proves the site’s H&BU shifted long ago:

  1. Negative Value: The original house effectively had negative value, as the developer purchased the site for $650,000 in early 2024, intending only to demolish the structure and build up.
  2. Land Value: The $650,000 purchase price was solely a land sale based on the potential to build high density—a potential maximized by the single-stair allowance.
  3. The New H&BU: The resulting 16-unit asset, listed at over $3.3 million, confirms the H&BU is a multifamily property that requires a Certified General (CG) Appraiser.
Aerial view of cleared 5,000-square-foot lot at 11 NE 55th Ave, Portland, Oregon, in 2025, after demolition of former single-family home and prior to construction of three-story, 16-unit apartment building enabled by Portland’s 2025 single-exit stairwell guidelines
Vacant 5,000 sq. ft. lot at 11 NE 55th Ave following demolition, awaiting construction of new three-story apartment building
Portland, Oregon – 2025 (Google Earth aerial)
Imagery ©2025 Google, Map data ©2025
  • Pro Forma Income: Because the building is new and actively offering rental concessions (e.g., free rent) to tenants, the listing’s financial figures are projected (pro forma). It has a Projected Gross Annual Income of $256,005 and a Pro Forma Cap Rate of 5.17%—financial metrics based on achieving full market rents and directly tied to the single-stair design’s efficiency. Appraising such a property requires a lease-up analysis and would necessitate a Certified General Appraiser to determine both the As-Is and As-Stabilized values.
  • Risk Area (RM1 & RM2): The greatest risk for CRs lies in Transitional Multi-Dwelling zones (like RM1 or RM2). These zones can get complicated quickly, and the single-stair allowance now pushes the practical development cap far beyond the CR’s 4-unit limit, even on small parcels.
  • Required Due Diligence: CRs must perform careful due diligence when analyzing the H&BU of transitional or infill parcels. If the H&BU conclusion is a multi-unit property exceeding four units, the assignment falls outside the scope of a CR license, and the assignment must be transferred to a Certified General Appraiser.

This apartment building on the street (made possible by the single-stair allowance) has now greatly complicated any future appraisals for the adjacent home. The adjacent home sits on a lot the same size (5,000 sq. ft.).

Single-family home on 5,000 sq ft RM2-zoned lot immediately adjacent to new three-story, 16-unit multifamily building at 11 NE 55th Ave, Portland — illustrating highest-and-best-use risk for Certified Residential appraisers in transitional RM1/RM2 zones, December 2025
Adjacent single-family home on a matching 5,000 sq ft lot zoned RM2—identical in size to the 11 NE 55th Ave site now redeveloped with a three-story, 16-unit apartment building
NE 55th Ave (North Tabor), Portland, Oregon – December 2025
Photo: Abdur Abdul-Malik, Certified Residential Appraiser

An appraisal on this home would now need to take into account the potential to remove the dwelling and place a 16-unit apartment building on the site. The apartment building next door, even though in a different zoning, proved that such a structure is physically possible on a 5,000 sq. ft. lot. Now, with the zoning law change, such a structure is also much more likely to be greenlit following a formal review by the planning department. Even if all the structures on this street were residential homes, a CR can no longer assume four units or less is the H&BU if the zoning is RM1 or RM2.

Density Rules Every Portland Appraiser Needs Tattooed on Their Forearm

In most of Portland’s multi-dwelling zones (RM1–RM4 and RX) there is no maximum density—only minimums. The City’s own table spells it out clearly:

ZoneMaximum DensityMinimum Density (base)
RM1None1 unit per 2,500 sf
RM2None1 unit per 1,450 sf
RM3None1 unit per 1,000 sf
RM4None1 unit per 1,000 sf
RXNone1 unit per 500 sf
RMP1 per 1,500 sf (bonus to 1 per 1,000 sf)1 per 1,875 sf
Source: City of Portland Bureau of Development Services – Density and Lot Dimensions in Multi-Dwelling Zones (09/27/2024)

On a typical 5,000 sq ft lot with no overlays:

  • RM1 → minimum 2 units, no upper limit
  • RM2 → minimum 3–4 units, no upper limit

Highest-and-Best-Use Reality Check for Certified Residential Appraisers

Unless a site in RM1, RM2, RM3, RM4, or RX has obvious, insurmountable physical or regulatory constraints (steep topography, protected trees requiring preservation, environmental overlay zones, landslide hazard, historic designation, or similar), a credible H&BU analysis can no longer conclude that single-family, duplex, triplex, or fourplex development is the concluded use without first testing a multifamily pro forma that likely exceeds four units.

Doing so risks an incomplete analysis and, more critically, completing a valuation that falls outside the Certified Residential license scope.

Appraisers: be careful!

Land Value and Investment Properties

The zoning change also directly affects land value and the as-completed project feasibility by allowing for a more efficient and profitable building design. This local regulatory shift also aligns with supporting federal policy, such as the Federal Housing Finance Agency (FHFA) increasing the combined volume cap for Fannie Mae and Freddie Mac’s multifamily loan purchases to $176 billion for 2026.

Market Context

Portland continues to grapple with a housing shortage, making any code modification that reduces hard construction barriers on infill parcels a necessary and impactful step. The North Tabor neighborhood where this property is located is appealing for investors, characterized by an urban-suburban mix and a high proportion of renters. This demographic composition and investor demand underscores the high asking price for turnkey rental assets like the new construction apartment building in our case study.

For lenders, realtors, estate planners, and attorneys, it is crucial to recognize that the appraisal of these new single-stair buildings will require a deep understanding of the regulatory context. Appraisers must accurately reflect the specific size, unit count, and advanced fire-safety features required by the Building Code Guide 25–10 to ensure a credible valuation and appropriate comparable selection.

Sources & Further Reading

Thanks for reading—I hope you found a useful insight or an unexpected nugget along the way. If you enjoyed the post, please consider subscribing for future updates.

CODA

Are you an agent in Portland and wonder why appraisers always do “x”?

A homeowner, lawyer, or estate planner with questions about appraiser methodology?

If so, feel free to reach out—I enjoy connecting with market participants across Portland and the surrounding counties, and am always happy to help where I can.

And if you’re in need of appraisal services in Portland or anywhere in the Portland Region, we’d be glad to assist.

Portland Real Estate Appraisal Brief – Friday, December 5, 2025: FHFA Raises 2026 Multifamily Loan Purchase Caps

The FHFA raised the 2026 multifamily loan purchase caps for Fannie Mae and Freddie Mac to $176 billion, a move that supports financing and affects property valuations in the Portland metro area.

Contemporary mid-rise multifamily apartment building in the Portland, Oregon metro area, relevant to FHFA’s 2026 $176 billion combined Fannie Mae/Freddie Mac loan purchase caps.
Modern multifamily building in Portland
Stock photo via Canva Pro

FHFA Announces $176 Billion in 2026 Multifamily Loan Purchase Caps

The Federal Housing Finance Agency (FHFA), regulator of Fannie Mae and Freddie Mac (the Enterprises), has set the annual multifamily loan purchase caps for 2026 at $88 billion for each Enterprise, resulting in a combined total of $176 billion in financing capacity. This figure represents a robust increase of more than 20% from the $73 billion cap per Enterprise in 2025. The expanded capacity is intended to maintain liquidity in the multifamily market, especially as lending activity is projected to stabilize and as older loans mature, requiring refinancing.

For perspective, the combined cap was $140 billion in 2024 ($70 billion each) and $146 billion in 2025 ($73 billion each). The nearly $30 billion increase between 2025 and 2026 is a strong signal of anticipated market strength.

The FHFA confirmed that the caps are a floor, not a ceiling. FHFA Director William J. Pulte stated the agency will monitor lending activity throughout the year and has the discretion to increase the caps further if warranted by market conditions, but will not reduce them—a policy designed to prevent disruption in rental housing finance.

Crucially, the mission-driven focus remains a key mandate: at least 50% of the Enterprises’ multifamily loan purchases must qualify as mission-driven affordable housing.

Bar chart showing combined Fannie Mae and Freddie Mac multifamily loan purchase caps increasing from $140 billion in 2024 to $176 billion in 2026, relevant to Portland metro residential and small multifamily property valuations.
FHFA multifamily loan purchase caps for Fannie Mae and Freddie Mac
Data: FHFA | Chart: PortlandAppraisalBlog.com

Mission-Driven Focus and Exemptions

The FHFA has maintained specific provisions to support underserved segments of the market:

  • Workforce Housing Exemption: Loans financing workforce housing—properties with rent or income restrictions for at least 10 years or the loan term, typically targeting tenants earning 80% to 120% of area median income (AMI)—are exempt from the volume caps and count fully toward the mission-driven threshold if at least 20% of units meet affordability criteria.
  • Affordability Requirements: The mission-driven criteria also include properties with regulatory agreements (e.g., Low-Income Housing Tax Credit/LIHTC), those in rural areas, and financing for small-scale affordable units in high-cost or cost-burdened markets. The FHFA has also recently complemented these purchase limits by doubling the annual LIHTC investment cap to $2 billion per Enterprise, which could accelerate multifamily construction starts in 2026.

This commitment to affordability ensures that a substantial portion of the capital is directed toward maintaining and increasing the supply of rental housing for lower- and moderate-income residents, a critical need nationwide and across the Portland region.

Appraisal and Valuation Implications for the Portland Region

The increased national lending capacity for multifamily properties has subtle yet important implications for certified residential and commercial appraisers, as well as the homeowners, lenders, and investors they serve across the Portland–Vancouver metro area.

Residential Properties (1–4 Units)

For residential stakeholders, the robust federal support for multifamily lending indirectly influences the single-family market. By increasing the capital flow for new and existing rental properties, the FHFA action helps stabilize the rental supply, which in turn can ease demand pressure that might otherwise shift to single-family inventory in high-demand areas.

In Oregon and Washington counties, including Multnomah, Washington, and Clark, this broader stability aids in appraising the smaller, 2–4 unit residential income properties often financed through conventional Fannie Mae/Freddie Mac channels. Appraisers should note that in the income approach, the assurance of strong capital markets for rental housing—particularly those properties meeting workforce housing needs—provides a stabilizing factor for Gross Rent Multipliers (GRMs) and capitalization rates used in valuation. This financing stability offers a necessary counterbalance to the volatility introduced by local regulations, such as Oregon’s statewide rent increase limits (set at 9.5% for 2026) and Portland’s mandatory relocation assistance policies (triggered by a 10% rent increase or higher). Crucially, the 9.5% state cap means the state maximum increase does not automatically trigger the significant financial liability of relocation assistance within Portland city limits.

Commercial / Multifamily (5+ Units)

For the commercial and investment real estate segment, which includes properties with five or more units, the increased $176 billion cap is a clear positive. It reinforces the Enterprises as a reliable, deep source of capital in the Portland–Vancouver corridor, where investment sales have been concentrated in Vancouver, Milwaukie, and Hillsboro/Beaverton submarkets.

Appraisers valuing these assets should incorporate the following:

  • Cap Rate Stability: The strong financing capacity acts as a floor, limiting upward pressure on capitalization rates that might otherwise result from tighter credit conditions.
  • Workforce Housing Marketability: The explicit cap exemption for workforce housing loans is highly relevant. Appraisers must consider a property’s potential eligibility for this favorable financing when assessing its highest and best use and marketability, especially in submarkets facing high rent growth or in communities like those in Cowlitz and Skamania counties where mission-driven initiatives promote long-term affordability.
  • Market Context: The assurance of this funding stream is timely, as the Portland metro multifamily market currently faces an elevated vacancy rate (ranging from approximately 5.5% to 7.5%, with higher rates for luxury Class A units) due to a wave of recent new deliveries. However, the pipeline is slowing significantly (new construction starts down over 50%), suggesting this capital will be available precisely as the market rebalances and conditions tighten.

Market Context

The FHFA’s decision to increase the combined cap to $176 billion is broadly supported by industry groups like the Mortgage Bankers Association (MBA) and the National Association of Home Builders (NAHB). This federal framework is expected to bolster the long-term rental stability that is crucial for the Portland metro area. The increased lending capacity comes at a pivotal time, mitigating the risk of a future housing shortage that could result from the current dramatic slowdown in new development across the region. The decision aligns the national financial framework with the local market’s need for capital, particularly for mission-driven and workforce housing, which remains a consistent demand factor for appraisers to consider.

Sources & Further Reading

Thanks for reading—I hope you found a useful insight or an unexpected nugget along the way. If you enjoyed the post, please consider subscribing for future updates.

CODA

Are you an agent in Portland and wonder why appraisers always do “x”?

A homeowner, lawyer, or estate planner with questions about appraiser methodology?

If so, feel free to reach out—I enjoy connecting with market participants across Portland and the surrounding counties, and am always happy to help where I can.

And if you’re in need of appraisal services in Portland or anywhere in the Portland Region, we’d be glad to assist.

Portland Real Estate Appraisal Brief – Thursday, December 4, 2025: National Home Sales Show Modest October Increases

National existing-home sales rose 1.2% and pending sales rose 1.9% in October 2025, providing context for Portland metro appraisers amid elevated regional prices.

Portland Oregon skyline at dusk with NAR Existing-Home Sales & Pending Sales October 2025 Report banner – context for national housing trends and Portland metro appraisals
Portland Oregon skyline at dusk.
Photo: Razvan Orendovici via Wikimedia Commons (CC BY 2.0)

National Home Sales Overview

In October 2025, pending home sales across the U.S. rose 1.9% from September, reflecting a modest uptick in contract signings amid lower average mortgage rates(6.25%) for a 30-year fixed loan. Year-over-year, however, pending sales edged down by 0.4%. This monthly gain marks a continuation of buyer activity amid fluctuating economic signals.

Existing-home sales also increased, climbing 1.2% month-over-month to a seasonally adjusted annual rate of 4.10 million units. On a year-over-year basis, existing sales were up 1.7%, with single-family homes comprising the bulk at 3.71 million units annually. Condominium and co-op sales contributed 390,000 units, showing stronger monthly growth at 5.4%.

The national median existing-home price stood at $415,200 in October, representing a 2.1% increase from the previous year. Single-family homes had a median price of $420,600, while condos and co-ops were at $363,700. These price levels underscore ongoing affordability challenges in certain markets.

NAR Pending Home Sales Index October 2025 infographic – national pending sales rose 1.9% month-over-month with regional breakdowns and Portland Oregon metro market context
NAR Pending Home Sales Snapshot – October 2025
Infographic courtesy National Association of REALTORS®

Regional Variations & Inventory

Regionally, pending home sales showed mixed results. The Midwest led with a 5.3% monthly increase and a 0.9% year-over-year gain, attributed to better affordability. The South followed with a 1.4% monthly rise and a 2.0% annual increase. The Northeast gained 2.3% month-over-month but declined 1.0% year-over-year. In contrast, the West saw a 1.5% monthly decrease and a 7.0% annual drop, highlighting price pressures in higher-cost areas.

For existing-home sales, the Midwest again outperformed with a 5.3% monthly increase to 990,000 units annually, up 2.1% year-over-year. The South edged up 0.5% monthly to 1.86 million units, with a 2.8% annual gain. The Northeast held steady monthly at 490,000 units but rose 4.3% year-over-year. The West declined 1.3% monthly to 760,000 units, down 2.6% annually. Median prices varied regionally, with the Northeast at $503,700 (up 6.5% year-over-year), Midwest at $319,500 (up 4.6%), South at $362,300 (up 0.3%), and West at $628,500 (up 0.1%).

NAR Existing-Home Sales October 2025 infographic – national median price $415,200, 4.4 months supply, regional sales and price trends relevant to Portland metro residential appraisals
NAR Existing-Home Sales Housing Snapshot – October 2025
Infographic courtesy National Association of REALTORS®

Inventory and Market Conditions

Total housing inventory dipped slightly to 1.52 million units in October, down 0.7% from September but up 10.9% from the prior year. This equates to a 4.4 months’ supply at the current sales pace, a minor decrease from September’s 4.5 months but an improvement from 4.1 months a year ago. These figures indicate a gradual easing in supply constraints nationally.

NAR Chief Economist Lawrence Yun noted that sales advanced despite external factors, with buyers responding to lower mortgage rates averaging 6.25% for a 30-year fixed loan. He emphasized regional disparities, with the Midwest and South benefiting from more affordable inventory, while the Northeast and West face supply shortages and elevated prices. Yun also highlighted decelerating rents potentially aiding inflation control and supporting further rate cuts by the Federal Reserve.

Implications for the Portland Region

These national trends offer context for stakeholders in the Portland metro area, where market dynamics may echo Western region challenges such as higher prices and softer sales growth. For perspective, the median close price for single-family detached residential properties in the Portland region held at $600,000 through Q3 2025. While this is significantly above the national October median of $415,200, it is slightly below the broader West region’s October median of $628,500, suggesting Portland is performing comparably on price relative to its regional peers. For detailed local metrics through September, refer to our Portland region Q3 2025 market update.

Sources & Further Reading

Thanks for reading—I hope you found a useful insight or an unexpected nugget along the way. If you enjoyed the post, please consider subscribing for future updates.

CODA

Are you an agent in Portland and wonder why appraisers always do “x”?

A homeowner with questions about appraiser methodology?

If so, feel free to reach out—I enjoy connecting with market participants across Portland and the surrounding counties, and am always happy to help where I can.

And if you’re in need of appraisal services in Portland or anywhere in the Portland Region, we’d be glad to assist.

Portland Real Estate Appraisal Brief – Wednesday, December 3, 2025: FHFA Raises 2026 Conforming Loan Limit to $832,750

FHFA raises the 2026 conforming loan limit to $832,750. In Q3 2025 alone, 99 Portland-area sales (70 conventionally financed) closed $806,501–$832,750 and will now avoid jumbo status.

Picture of Constitution Center (400 7th Street SW, Washington, D.C.) – headquarters of the Federal Housing Finance Agency (FHFA).
Constitution Center (400 7th Street SW, Washington, D.C.) – headquarters of the Federal Housing Finance Agency (FHFA).
Photo: Ajay Suresh via Wikimedia Commons (CC BY 2.0)

FHFA Announces 2026 Conforming Loan Limit Adjustments

The Federal Housing Finance Agency (FHFA) has released its annual conforming loan limit values for 2026, effective January 1 for mortgages acquired by Fannie Mae and Freddie Mac. The baseline limit for one-unit properties increases to $832,750 — up $26,250 from the 2025 figure of $806,500 — reflecting a 3.26% rise in the national House Price Index from the third quarter of 2024 to the third quarter of 2025.

All counties in Oregon and the Portland-Vancouver-Hillsboro MSA remain at the baseline limit; no high-cost ceiling applies in our region.

FHFA Interactive Map

Appraisal Implications for the Portland Region

In Q3 2025 alone, 99 residential properties in the six-county region closed between $806,501 and $832,750. Of those, 70 were financed conventionally — transactions that would have required jumbo terms in 2025 but will now stay fully conforming in 2026.

Across the full quarter (4,682 total SFR detached-class closings):

  • 85.48 % (4,002 sales) closed under $900,000
  • Only 14.52 % (680 sales) closed at or above $900,000
  • The single busiest upper-tier band was $800,000 – $899,999 with 367 sales

Market Context from Q3 2025 Actual Sales

Price Band# of Sales% of Total MarketAvg Close PriceAvg CDOM
$800k– $899k3677.84 %$847,31351 days
$806,501 – $832,750992.11 %$820,86449 days
≥ $900k68014.52 %≈ $1,340,000+72+ days

For appraisers, lenders, realtors, estate planners, and attorneys, the 2026’s higher limit removes friction from one of the region’s most active price segments and keeps 85+% of transactions comfortably conforming.

Sources & Further Reading

Thanks for reading—I hope you found a useful insight or an unexpected nugget along the way. If you enjoyed the post, please consider subscribing for future updates.

CODA

Are you an agent in Portland and wonder why appraisers always do “x”?

A homeowner with questions about appraiser methodology?

If so, feel free to reach out—I enjoy connecting with market participants across Portland and the surrounding counties, and am always happy to help where I can.

And if you’re in need of appraisal services in Portland or anywhere in the Portland Region, we’d be glad to assist.